Negative Operating And Free Cash FlowPersistent cash burn in 2025 constrains the company's ability to self-fund working capital, capex, or growth initiatives and increases reliance on external financing. If cash flow remains negative for multiple quarters, financing costs and dilution risk rise, lengthening the path to sustainable profitability.
Ongoing Net LossesAlthough losses narrowed, persistent negative net margins mean return on equity remains below zero and shareholders don’t see compounding value. Prolonged losses limit reinvestment capacity and make recovery contingent on sustained margin improvement or structural changes to the cost base or pricing.
Structurally Thin Gross MarginsA gross margin near 13% leaves little room to cover SG&A and other operating costs, making profitability highly sensitive to input-cost inflation or pricing pressure. Thin structural margins reduce operating leverage and heighten execution risk, requiring either cost transformation or pricing power to achieve durable profits.